According to the research report released by CICC, considering TCL Electronics' (01070) product structure and the continuous optimization of overseas channel structure, it is expected to continue to improve its profitability. CICC raised the earnings forecast for 2024/2025 by 10%/20% to HKD 132.2 million/HKD 165.3 million. It maintains the "outperform the industry" rating. Taking into account the overall valuation improvement of the Hong Kong stock sector, the target price was raised by 37.5% to HKD 8.36. TCL's global market share in the color TV sector continued to increase: according to AVC Revo data, in 1Q24, TCL's global color TV shipment share was 13.4%, an increase of 0.4ppt from 2023.

The report states that TCL Electronics continues to promote globalization and increase regional market share. 1) The company's color TV business has entered a global expansion period since 2017. According to AVC Revo data, TCL's global color TV shipment share increased from 6.8% in 2017 to 13.0% in 2023, firmly holding onto the TOP 3 spot globally. In 1Q24, TCL's shipment share was 13.4%, an increase of 0.4ppt from 2023. 2) In overseas markets, according to the company's announcement, in 2023, TCL ranked second in the US market, with a market share second only to Samsung. In more than 10 emerging markets, TCL ranks among the top five in terms of market share. In 1Q24, TCL's market share in France, Poland, and Sweden in Europe increased to second place. TCL's overseas market share continues to rise, with the growth rate of shipped goods in Europe and the Middle East and Africa market significantly outpacing the company's overall performance. 3) In the domestic market, in January-May 2024, TCL's overall online/offline retail sales accounted for 20%/16% of the market share, an increase of 1.1/+1.4ppt year-on-year. Its advantage in the high-end mini LED sector is even more prominent.